Abbot Safe & Lock
the Following Information Was Obtained from the Company's

question 144

Multiple Choice

Abbot Safe & Lock
The following information was obtained from the company's records for Year 1:
$\begin{array}{lr}\text { Credit sales during the year } & \$ 3,200,000 \\\text { Accounts receivable-December 31, Year 1 } & 325,000 \\\text { Allowance for doubtful accounts-December 31, Year 1 } & 35,000 \\\text { Bad debt expense for the year } & 20,000\end{array}$

-Refer to the figure A Better Mousetrap.What amount should the company recognize as interest revenue on December 31,Year 1?

• A) $0
• B) $750
• C) $1,500
• D) $9,000

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Definitions:

Time Sheet

A document or tool used to track the number of hours worked by an employee during a specific period.

Opening Adjusting Entries

Opening adjusting entries refer to journal entries made at the beginning of an accounting period to adjust account balances from a previous period.

Capital Stock

Represents the equity or ownership sections of a corporation divided into shares.

Opening Balance Equity

An account used in accounting software to offset discrepancies when establishing opening balances during the initial setup of the financial records.